IAG Cargo 2017 Q1 financial results

IAG Cargo has today announced its Q1 2017 results, reporting commercial revenue of €256m over the period from January 1 to March 31, 2017, a decrease of 2.1 per cent on 2016 at constant exchange.

Overall yield for the year was down 5.5 per cent at constant exchange. Volumes were up 3.6 per cent, while capacity grew by 12 per cent.

Lewis Girdwood, Chief Financial Officer at IAG Cargo, commented: “Our Q1 2017 performance has seen an encouraging start to the year. We have seen several sectors of the airfreight market stabilise, with some regional volume growth.

“Increased demand from Asia Pacific and Europe has led to a growth in airfreight volumes between the two regions, driven in part by sea freight constraints. With over 150 flights per week to and from 15 Asian destinations, we are well placed to work closely with our freight forwarding partners to help alleviate this pressure and ensure shippers’ supply chains remain uninterrupted. Through the first quarter of the year we saw a 34% rise in volumes from Europe to Asia Pacific when compared to the same period in 2016, with fashion, spare parts, fresh fish and leather goods performing particularly well.

“UK and European markets have also performed well throughout the first quarter of the year, with notable strong North American demand from the perishables and aerospace sectors.

However, the global airfreight market remains challenging overall, with poor weather conditions in Latin America affecting substantial fresh produce flows and a continued oversupply of capacity in the market, placing pressure on yields.

“Conscious that a volatile market place remains a consistent possibility, we remain focused on the continued development of our products and services that enhance our customer offering. We are pleased with the development of our newest product, Critical, which has now surpassed 1000 shipments since its launch helping meet the demands of the emergency shipment market.

“The second quarter of the year will see us introduce a new website for our customers, which will greatly simplify the way forwarders book airfreight with IAG Cargo. This will be accompanied by an enhanced proposition specifically for our smaller and medium-sized forwarders.

Our continued focus on cost management combined with premium product growth has enabled us to offset some yield pressure. Throughout 2017 we will continue to bring further benefits to our customers by understanding their needs and investing in key areas of our business, such as IAGCargo.com. We will be introducing a number of new innovations to help drive forward the digitisation of cargo and will continue to improve our customers’ shipping experience”.